Although recent developments have been intense, both in the market for plant-based products and in the industry in general, they are still related to the same problems, namely the effects of the summer drought, inflation, and the war in Ukraine. In recent weeks, the French government has considered imposing temporary power cuts in regions due to the ongoing energy crisis in Europe. Germany is experiencing double-digit inflation for the first time in decades, while citizens themselves say that the inflation they feel can reach almost 35%. In the current situation, many German companies have announced that they will further increase the prices of their products.
Sweden has been working on developing contingency scenarios for winter power outages. At the same time, representatives of the European Union argued that the EU has enough gas reserves to manage without Russian supplies, provided that the coming winter is mild. The problems in Europe weaken the currency of the European Union against the dollar. Some countries continue to purchase gas and oil from Russia, which makes production costs for manufacturers with factories on their territory lower than in other countries.
Many people and businesses are in desperate need of good news and reassurance that things can only get better, but that is unlikely. The International Monetary Fund predicts that global growth next year will be lower than previously expected, and by 2023 many will feel the recession on their skin, or rather, in their wallets. As we have already suspected, the coming months will be a time of tough decisions and survival of the fittest.
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Corn Gluten Meal
Corn Starch has been one of the most sought-after plant-based products in recent weeks. At the same time, drought, which has particularly affected southeastern European countries, and high energy prices mean that prices for goods derived from corn have not only risen, but are likely to continue to do so. We are seeing a lot of interest from buyers who have finally started confirming their orders. Many aqua feed producers have imported the product from Ukraine in the past and are now looking for alternatives. Everyone definitely needs to watch out for mycotoxins and aflatoxins.
Potato Protein
There is a satisfactory availability for chicken, cattle and pig farmers interested in buying, but it will expire at the end of November. The European market is not yet ready to accept the price increase, but traders from other regions are buying the more expensive product now. It’s a good time for American buyers to stock up on Potato Protein, Vital Wheat Gluten and Hydrolyzed Wheat Gluten from Europe.
Vital Wheat Gluten
Another product whose availability is satisfactory for poultry, cattle and pigs farmers. This trend will continue until the end of November, and the aforementioned breeders will be forced to switch to concentrated feed in December, which is also related to the annual feeding of animals in a building instead of pasture during the winter. As a result, the demand for feed additives will increase.
Hydrolyzed Wheat Gluten
Calf breeders who normally use Hydrolyzed Wheat Gluten due to high energy and production prices are looking for cheaper alternatives, but they are not readily available. It is worth buying this product now that it is on the market, because even the near future is difficult to foresee at this time.
Dextrose
Dextrose is another 'hot commodity’ lately. The feed grade market is on the move, and the food grade market is extremely active. We are receiving plenty of inquiries for feed grade. All types of sugar are currently on the rise, with the price increasing due to the rise in energy prices. Already, demand for food grade is increasing due to the upcoming holiday season – cookie and other candy manufacturers are stocking up for this busy time.
Soy flour NON – GMO
Many calf feeders order this product as an alternative because of its lower price (see Hydrolyzed Wheat Gluten). According to our observations, the soybean harvest in Ukraine has been relatively good, and producers are open to orders until next February.
